George Michael Loses Lawsuit Against Sony

By RICHARD W. STEVENSON,

Published: June 22, 1994

LONDON, June 21—
In a case that mixed questions about artistic freedom, money and ego, a British judge today rejected a bid by the pop singer George Michael to be freed from his long-term recording contract with the Sony Corporation.

The ruling was welcomed by industry executives, who saw in Mr. Michael's case a challenge to the traditional practice of signing artists to multi-album deals as a way to offset their heavy investments in discovering and promoting new acts.

But it prompted Mr. Michael, one of the biggest stars of the late 1980's, to call his situation "professional slavery" that left him little control over his own work and career. A 15-Year Contract

Mr. Michael had filed suit against Sony a year and a half ago, contending that the eight-album contract he signed in 1988 was unfair under British and European Union law because it bound him to the company for up to 15 years and gave him no control over how his music would be marketed.

Mr. Michael testified that his discontent followed Sony's reaction to his 1990 album "Listen Without Prejudice, Volume I." With that album, Mr. Michael said, he made a deliberate decision to play down the sultry, sex-symbol image he had cultivated starting with his days with the pop duo Wham, a decision he said did not sit well with Sony executives interested only in sales and not in his development as an artist.

He also testified that Sony had sought to punish him by not promoting "Listen Without Prejudice" as aggressively as it should have, particularly in the United States. The album sold five million copies, a relative disappointment after his 1988 album "Faith" sold 14 million copies worldwide.

Sony executives testified that they had marketed the album to the best of their abilities. And Sony's lawyers tried throughout the trial to establish that Mr. Michael was well aware of the terms of the contract he signed in 1988, and that the deal was a considerable improvement over his earlier contracts with CBS Records, which Sony acquired seven years ago. Ruling: A Fair Deal

In issuing his ruling today in the High Court in London, Justice Jonathan Parker largely accepted Sony's view of the matter, saying that the contract was "reasonable and fair" and that Mr. Michael understood the deal.

"I am satisfied on the evidence that there is no substance in George Michael's claim of unfair conduct by Sony or in any of the detailed complaints which he makes," Justice Parker's ruling said. "In particular I am satisfied that there was no such deliberate policy decision by Sony as George Michael alleges."

At a brief news conference, Mr. Michael said that he thought there were strong grounds for an appeal and that he would probably file one.

But the singer, who turns 31 on Saturday, declined to answer questions about whether he would make good on his earlier threat never to record again for Sony.

Sony, clearly trying to avoid further damage to its relationship with Mr. Michael, restricted its official reaction to a one-sentence statement: "We have great respect for George Michael and his artistry, and look forward to continuing our relationship with him." A Way to Recoup

The case had been followed intently in the recording industry, not just because it was a rare instance of a spat between between artist and label being aired publicly and in great detail, but because of the precedent it could have set regarding long-term contracts.

Recording companies have always argued that because they spend so much to find and develop new artists, they can recoup their investments only through long-term relationships with those relatively few acts who go on to major success. If artists were given freedom to break their contracts and walk away after an album or two, the companies would no longer be able to afford to spend so much on new talent, executives said.

"The concern we had was that the judge might have found against long-term contracts between artists and record companies," said David Hughes, a spokesman for EMI Records in London. "Had the judge found that, it would have had quite severe implications for us in our confident ability to invest in artists."

At the news conference, Mr. Michael said he had signed the 1988 contract "to make the best of a bad job" and sued only when left with no other option.

"In fact, there is no such thing as resignation for an artist in the music industry," Mr. Michael said. "Effectively, you sign a piece of paper at the beginning of your career and you are expected to live with that decision, good or bad, for the rest of your professional life."

Photo: George Michael arriving at the High Court in London yesterday to hear the ruling in his bid to break his 1988 contract with Sony. (Reuters)